Organizational Change

Organizational Change, Innovation and Competitive Advantage

Organizational Change, Innovation and Competitive Advantage

Introduction

Innovation is the corporate mantra in 21st century if any firm would like to sustain in such dynamic environment. Innovation helps the organization maintain a competitive edge. Even though, a firm can compete in the market on any grounds, but in modern times, innovation is undeniably the ultimate resource. If we accept that competitive advantage comes from innovation, then it is also true that innovation is only possible in the presence of change. In this regard, change and managing change is of pivot importance. Within the context of organization change management, there are various dimensions which must be handled by the higher management in order to effectively bring about change within the organization.

The purpose of formulating a report on the topic titled “Organizational Change, Innovation and Competitive Advantage” is to comprehend the various relevant literatures surrounding the topic and provide a critical analysis. On the basis of the analysis, we will endeavor to draw a meaningful conclusion.

Literature Review & Analysis

In this chapter, several complementary bodies of literature are reviewed for their implications in assessing practices for managing change.

Corporate Change and Culture

When the name of organizations like Apple, Samsung, Sony, Dell, Toyota are presented to a business student, the immediate point of distinctiveness he/she can made which differentiate these organizations from rest is their corporate culture. Culture is a intangible notion even then one can observe it very lucidly in these organizations (Alvesson, 2002). It is one thing that has influenced on the firm operations, stakeholders and external environment within which the firm is operating. Culture alone cannot be considered as a guarantee for the firm's success but a positive culture can proved to be a key competitive advantage in the industry.

When it comes to defining culture, it should be taken into consideration that it is under the influence of amalgam of factors including the industry within which the firm is operating, its location, history/experiences of the firm, stakeholders including employees as well as customers, and the interaction between different stakeholders. Greenberg and Baron (1997) defined it as a “cognitive framework consisting of attitudes, values, behavioral norms, and expectations”. According to Clemente and Greenspan (1999), it is the collection of thoughts, habits, attitudes, feelings, and patterns of behavior”. And yet according to Ahmed (et al, 1999), culture represents the “pattern of arrangement, material or behavior which has been adopted by a society (corporation, group, or team) as the accepted way of solving problems”. According to Qubein (1999), culture is made up of range of pivot elements. It does not have only a mission statement but it comes along with a lucid organization vision.

Behind every successful organization, there are always certain values which fostered the corporate culture prevails in it. Some argue that there are some values that determine the success of companies (Denison, 1984, 1990, Gordon and Di Tomaso, 1992), while others believe that, regardless of the type of value, that is to say by the ...